By *Michelle Moss, Director: Assessments at Signium Africa 

Second only to emotional intelligence (EQ), cultural intelligence (CQ) is fast becoming one of the most in demand skills for executives in today’s culturally diverse world of business. The growing need for CQ is just one of the consequences of globalisation.

It’s true that companies are setting up more bases in foreign countries than ever. But their own societies are simultaneously becoming more culturally diverse, as foreign citizens migrate in search of better career opportunities and lifestyles. This means that culture is no longer a minor concern for executives. It’s a strategic imperative, and high-CQ leadership is needed to intelligently address this trend. So what is cultural intelligence? And is it possible to develop it in your executive team? The simplest and most used definition was developed by researchers Ang and Van Dyne in 2008, as “the capability of an individual to function effectively in situations characterised by cultural diversity.”

They also suggested that CQ is structured in four dimensions, namely, metacognitive, cognitive, motivational, and behavioural CQ. These have been adopted, more or less, in subsequent research and can be summarised as follows.  Metacognitive CQ is “an individual’s level of conscious cultural awareness during cross-cultural interactions”. Cognitive CQ is “knowledge of norms, practices and conventions in different cultures that has been acquired from educational and personal experiences”. Motivational CQ is the “capability to direct attention and energy towards learning about and functioning in situations characterised by cultural differences”.

Finally, behavioural CQ is the “capability to exhibit appropriate verbal and non-verbal actions when interacting with people from different cultures”.  In summary, executives must be aware of cultural differences, understand them, be willing to learn more, and act in relation to that understanding. What the above establishes in no uncertain terms is that CQ is not an innate competency. It can be acquired through training and, most importantly, exposure to the culture in question.

The benefits of increased CQ are becoming more obvious by the day. Most CEOs agree that as technology takes over many traditional business functions, success will be defined by how well people interact with each other. They also agree that diverse management teams foster innovation because they bring important cultural perspectives to the table.

However, differences often breed conflict and companies who fail to foster CQ may find themselves unable to manage that diversity. In fact, CQ and innovation are closely correlated. Consequently, they risk losing their competitive edge and corporate sustainability. According to a survey by the Economist Intelligence Unit (EIU), 70% of international ventures fail because of cultural differences. Another source reveals that 90% of executives from 68 countries say that cross cultural management is their toughest challenge.

Culture is becoming so critical to business that in some organisations, astute CEOs are heading up their diversity and inclusion practice groups. It is in every business’s interest, whether they operate locally or internationally, to nurture CQ in their enterprise, especially in their executives and C-suite. If that critical talent cannot be developed in house, it should be acquired externally through executive search. 

*Michelle Moss is a Director: Assessments at Signium Africa (previously Talent Africa), a leading South Africa-based executive search and talent management company servicing sub-Saharan Africa. 

Website: www.signium.co.za
Tel: +27 11 771 4800

By Michelle Moss*

Obsolescence. It happened to VCRs. It also happens to executives, even high flyers; especially the tunnel-vision variety that obsess about the job on hand. Obsolescence no longer takes decades. It can happen at pace as technologies change and businesses react to new legislation, heightened competition and more demanding customers. Forward-thinking executives increasingly realise they have to be fit for purpose today and in five years’ time. Obsolescence is a career risk and like any risk can be managed by putting proper mitigation strategies in place.

Talent search and management companies – so-called corporate head-hunters –  face increasing calls from individuals for a heads-up on changing competency requirements.

Often, the request comes from the mid-life CEO, the high achiever who took a leadership role aged 45 and is determined to be in place (or to have moved on to bigger and better things) by the time he or she is 55. Competency-focused future-spotting is driven by the desire to mitigate the risk of a stalled career. However, parameters widen almost immediately.

Reference to relevant literature like the World Economic Forum’s ‘Future of Jobs Report 2018’ and the work of the MIT Initiative on the Digital Economy indicate that personal competencies are inextricably linked to the corporate future. The business or industry vision invariably shapes the personal quest for continuing relevance by individual executives. A global player like Riverwaves (a world leader in bespoke competency-based HR solutions) is close to these developments.

Alexandra Pascu, Riverwaves’ GM - Middle East and Africa, notes: “Customised competency models drive business strategy while delivering benefits across the board - at individual, HR department and organisational levels.” According to studies on the statistical validation of competency models**, the tangible return on investment includes a 63% reduction in staff turnover through increased employee satisfaction (attributable to greater clarity on performance expectations), a 19% improvement in employee performance and a 12.5% rise in sales and profits (a by-product of competency-based training).

Adoption of a bespoke competency model enables organisational vision and values to be translated into employee behaviour.  According to Pascu, the corporate embrace of competency modelling has been accompanied by a global increase in demand for in-house competency training for line managers and talent professionals.

So, we see shared focus on future-ready skills by both the organisation and its people (including those in the C-suite).  Individuals looking to avoid personal obsolescence increasingly find themselves working in a de facto partnership with organisations that are just as eager to stay current and relevant. The result doesn’t have to lead to a total immersion in new technologies. We may find ourselves working alongside robots and co-bots while dealing with digitisation and artificial intelligence, but very human attributes will make us special and keep us on top.

The World Economic Forum believes workforces will become even more diverse (multi-racial, multi-cultural and multi-generational with greater female representation). Orchestrating the input of ‘gig’ workers, freelancers, short-term project teams and consultants will be vital as structures become more flexible.  Such scenarios help explain a quick competency to-do list suggested by MIT’s Erik Brynjolfssons. He advises us to put our focus on:  Creativity Emotional intelligence (interpersonal skills, teamwork and leadership) Passion for our work Apparently, love never goes out of style. Not even love for what you do.

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*Michelle Moss is a Director at Signium Africa (previously Talent Africa), a leading South African-based executive search and talent management company servicing sub-Saharan Africa. www.signium.co.za **Meta-analysis study reported in “The economic value of emotional intelligence competencies and EIC-based HR programmes”, Lyle Spencer.  In Cherniss, C. and Goleman, D. eds.The Emotionally Intelligent Workplace:  How to Select for, Measure, and Improve Emotional Intelligence in Individuals, Groups and Organisations.  San Francisco, CA: Jossey-Bass/Wiley 2001.Spencer, Lyle, “Competency Model Statistical Validation and Business Case Development.”www.inscopecorp.com/resources-papers-statistics.aspx, 2004.

Website: www.signium.co.za
Tel: +27 11 771 4800